Media Release

Federal Budget Confirms Cuts to Medicare

The Federal Budget has entrenched funding cuts to women’s health and a freeze on pathology rebates that will make it harder to keep pathology bulk billed.

Australian Pathology — the peak national body representing Australia’s private pathology providers — has now urged the Prime Minister to intervene and reverse the funding crisis.

The Budget locked in $356 million in funding cuts affecting Vitamin B12 and urine tests, which are predominantly needed by women and commence on 1 July this year.

It also continued an indexation freeze on two-thirds of pathology items that has now been in place for 25 years, making them unique in the Medicare system.

There is an offset with a series of new and amended items in the Medicare Benefits Schedule, but the scale of the cuts substantially outweighs the new investment.

“The decision to double down on Medicare funding cuts that affect women’s health and make it harder to keep pathology bulk billed will affect the quality of health care patients receive,” Australian Pathology CEO Liesel Wett said.

“At a time when hip pockets are under strain from the cost-of-living crisis, it makes no sense to put Australians at risk of paying out-of-pocket costs for essential tests.

“You can’t pretend to be concerned about the cost of living and women’s health care when you’re cutting funds to vital pathology tests.

“That’s why the Prime Minister should intervene, reverse the cuts, end the indexation freeze and ensure pathology tests needed by GPs and their patients remain bulk billed.

“We’d also urge the Coalition to raise its voice on the cuts and make a meaningful commitment to ensuring that pathology services are properly and fully funded if they are elected.

“Inclusion of new or amended items in the MBS is positive, particularly the inclusion of faecal calprotectin testing for symptomatic patients with Inflammatory Bowel Disease.

“But the overall trajectory of investment in pathology is heading in the wrong direction.”

Australian Pathology has energised Australians with a campaign over the past year urging both sides of politics to keep pathology bulk billed.

More than 97,000 Australians have signed on to the campaign so far, and a recent poll of the database showed 92 per cent would change their vote based on the issue.

“Australians passionately understand the vital role pathology tests play in delivering high-quality health care,” Ms Wett said.

“More than 70 per cent of all health care decisions GPs make depend on pathology tests.

“We will continue to communicate the urgency of the issue with everyday Australians in electorates right across the nation right up to election day.”

*Australian Pathology commissioned the poll via a database of Australians signed up to the Keep Pathology Bulk Billed campaign. 5,229 respondents participated in the poll.

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